The EU stands by SMEs during coronavirus pandemic

02/04/2020

As part of the global response to the coronavirus outbreak, the European Commission stands by Eastern partner countries and has reallocated €140 million for the most immediate needs in Armenia, Azerbaijan, Belarus, Georgia, the Republic of Moldova, and Ukraine. In addition, the Commission will also redirect the use of existing instruments worth up to €700 million to help mitigate the socio-economic impact of the coronavirus crisis.

Commissioner for Neighbourhood and Enlargement Olivér Várhelyisaid: “These are very difficult times not only for the EU, but for our partner countries as well. We are doing all we can to mitigate the impact of the coronavirus outbreak on human lives and livelihoods. We are responding both to the immediate needs of the health systems, as well as longer term needs to the most vulnerable groups in society and small and medium-sized enterprises, which are the backbone of the economies in the six countries.”

The Commission is working closely with International Financial Institutions (IFIs) and relevant financing institutions from EU Member States as TEAM EUROPE providing a coordinated European response for the real economy, including SMEs, in particular through:

- Launching of a new support programme of €100 million to help SMEs, including self-employed and others to easily access credit and boost their businesses after the crisis;

- Facilitating, simplifying, accelerating, and reinforcing €200 million worth of existing credit lines and grants to SMEs in local currency including through its EU4Business Initiative;

- In addition, in the current crisis the EU has mobilised its major de-risking instrument the European Fund for Sustainable Development (EFSD), worth a total of €1.55 billion, with €500 million being made available for the EU's neighbourhood. This will rapidly provide liquidity in the EU's neighbourhood, including through working capital, trade finance, or moratoria on debt service. This support is in addition to the ongoing macro financial assistance support to partners, including Georgia, Moldova and Ukraine.

The Commission also stands ready to provide assistance through TAIEX, its peer to peer instrument, by using EU Member States expertise, experience and examples of good practices on assessing emergency preparedness response scheme and health systems.